UK Interest Rate Should Peak Below 4.5% to Avoid Deeper Recession; BOE Official
The Bank of England’s benchmark interest rate should peak below 4.5% if the central bank wants to avoid deepening and prolonging a recession, Swati Dhingra, the newest member of the bank’s monetary policy committee, said in an interview with the Observer newspaper. “The market is probably underestimating what damage that (level of interest rates) might cause to the UK economy,” she said. The central bank has raised interest rates eight consecutive times to push it’s benchmark to 3% in a bid to control soaring inflation. The rate-setting committee next meets on Dec. 15. If tightening continues at the current
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